6th August, 2002
Ministry of Heavy Industries & Public Enterprises  


DEVELOPMENT FUND FOR PAPER INDUSTRY BEING CONSIDERED


Shri Balasaheb Vikhe Patil, Minister of Heavy Industries and Public Enterprises has said he would recommend to the Government the setting up of a Fund for the development of Paper Industry . Shri Patil was speaking at an interactive session with the paper and newsprint industry here today. The Minister also said that an Inter-Ministerial Round Table to discuss various issues concerning the industry will be organised. Shri Patil urged the industry to become world-class and world-scale by investing suitably in upscaling the capacities and upgrading the process technology to align with the emerging techniques of cleaner and more eco-friendly processes and practices especially in the context of stringent environmental regulations. He complimented the paper industry for their efforts on pollution abatement and accreditation of the Environmental Management System (EMS) to the ISO 14001 by several integrated mills.

Dr. Vallabhbhai Kathiria, Minister of State for Heavy Industries and Public Enterprises urged the industry to take up large scale farm and social forestry activities and thereby generate employment opportunities in the informal sector through a win-win partnership with owners of large tracts of land.

Shri B.N.Jha, Secretary, Department of Heavy Industries, said on paper industry should address the sustainability issues right now through massive farm and social forestry efforts. He pointed out opportunities for attaining cost effectiveness while improving energy efficiency and maximizing the fibre recovery through applications of bio-technology in genetically engineered high-yielding and quick-yielding pulpwood species.

The Industry representatives brought up several issues plaguing the industry – non availability of appropriate fibre resources at affordable prices, imbalances in the customs duty structure with abysmally low level of customs duty on Newsprint and Light Weight Coated (LWC) paper imports, leading to disguised import of writing and printing paper under the garb or Newsprint or LWC, the diversion of bagasse for use as feedstock for power generation before fibre recovery, indiscriminate dumping of newsprint at incredibly low prices, import duty on inputs and intermediates being much higher than that on finished product. To remedy the fibre shortage, the industry pleaded for permission to utilize large tracks of degraded forest land for large-scale captive plantation of pulpwood species and zero duty on waste paper imports